Australian shares are on edge as US presidential votes roll in

THE Australian share market closed in the red — even before Donald Trump’s stunning victory in the race for the White House.

• LIVE BLOG: Latest results from the US election

THE Australian share market closed in the red — even before Donald Trump’s stunning victory in the race for the White House.

The benchmark ASX 200 index closed 1.9 per cent lower at 5156.6 points as the Republican candidate surged ahead in the marathon dash for the White House.

Before declaring victory about Mr Trump had claimed victory about 6.30pm AEST, he’d already taken the key swing state of Florida, which delivers 29 of the 270 Congressional votes required to take the presidency. Mr Trump was also expected to sweep the middle America states of Texas, Oklahoma, Kansas, Nebraska and the Dakotas.

The developments marked a sharp turnaround for the local bourse, which was 1 per cent higher just after noon as Democrat candidate Hillary Clinton took an early lead in a host of states on the US east coast including Delaware, New Jersey, Maryland and Vermont. Other states headed her way included New York and Illinois.

Mr Trump was also surging to victory in states including Alabama, Indiana, Kentucky and Tennessee, meaning the 55-vote west coast state of California — a likely Democrat hold — would not be enough for Mrs Clinton to claw her way back.

Markets had rebounded at the start of the week on rising expectations that Mrs Clinton would become America’s next president, an outcome seen as the most likely to benefit the US economy and equities.

Cardboard cut-outs of Republican presidential candidate Donald Trump and Democrat Hillary Clinton at a function in Sydney on Wednesday.

Trading was muted in the morning session as investors opted to sit back and watch the drama overseas unfold, analysts said.

But thoughts of an easy day for Mrs Clinton were soon erased as markets quickly unwound their positions, sending investors scurrying for the exits.

“It’s amazing stuff, a complete reversal,” IG market strategist Evan Lucas said.

“Markets just didn’t price this in (a Trump presidency).”

Currency markets also came in for some chop, with the Mexican peso — considered a strong guide to Mr Trump’s fortunes given his outspoken stance on illegal immigrants and plans for a wall along the US-Mexico border — sharply lower.

The Australian dollar was also on the rollercoaster ride, adding half a US cent to US77.57c just after noon before taking an amazing dive to US76.26c at 4pm.